Legal Question in Investment Law in Nebraska

Re: cashing out shares in a family corporation

Your question requires an answer based on Nebraska law.

If this were a California corporation, the answer would be that the corporation is under no obligation to repurchase its shares unless the corporation and the shareholders have entered into an agreement requiring the corporation to do so upon demand or under specified circumstances. While it is quite common for a corporation to have the right to repurchase its shares, it is rather uncommon for it to have an obligation to do so.

However, such an obligation might exist, and if so it would most likely be reflected in a corporate record such as the bylaws, the resolutions of the board, a shareholder contract, or similar corporate record.

In California, a minority shareholder would have the right to inspect the corporate records to determine whether a record reflecting such an agreement or obligation exists. Nebraska law may be similar, but I cannot so advise you.